Yes, land and buildings could be classified as heritage assets. The classification of land and buildings as heritage assets or another type of asset would depend on:

  • whether they meet the definition of heritage assets or another type of asset; and
  • if it is a heritage asset, whether it has a significant alternative use.

What is a heritage asset?

A heritage asset is (a) significant from a cultural, environmental, historical, natural, scientific, technological, or artistic perspective, and (b) is held indefinitely for the benefit of present and future generations.

Land could meet the definition of a heritage asset because, for example, it is an important site used for cultural or religious rituals. A building could be a heritage asset because, for example, it was designed by a famous architect or because it reflects a specific architectural style.

Are land and buildings used as heritage assets or for another purpose?

Many government entities own properties or buildings that are heritage assets. However, they are often used for administrative purposes or in delivering services. If this other use is significant, heritage assets are accounted for based on this other use using, for example, the relevant Standard of GRAP, e.g. GRAP 17 on Property, Plant and Equipment, or GRAP 16 on Investment Property.

Should items on land be accounted for separately? 

Land and assets on the land are different assets, and as a result, their accounting may differ. Typical examples to illustrate the importance of the separation are as follows:

  • Fauna and flora on heritage land: The fauna and flora should be considered separately from the land. As fauna and flora are living animals and plants, they cannot be held “indefinitely” and therefore do not meet the definition of heritage assets. The fauna and flora should be accounted for using GRAP 110 on Living and Non-living Resources, while the land that is a heritage asset will be accounted for using GRAP 103 on Heritage Assets.
  • Burial sites or graves on commercial land: Although the burial sites or graves are located on the land, they should be accounted for as heritage assets if they meet the definition. The land is accounted for separately using another Standard (most likely GRAP 16 if it is commercial property).

Note: This article is based on the current version of GRAP 103 on Heritage Assets. The Board may issue amendments to GRAP 103 on the classification of assets. The current version of GRAP 103 applies until the amendments to the Standard are approved by the Board and the Minister of Finance.

This article reflects the views of the staff of the ASB and not the Board.